Business and Personal Finance Dictionary

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• STRESSED PAC
  
  A planned amortization class (PAC) CMO tranche in a CMO experiencing rapid prepayments of underlying collateral. The PAC tranche is still performing within expected ranges, (i.e., it is not a busted PAC); however, the support tranches are under strain. A stressed PAC will become a busted PAC if the prepayments continue at or near their current speed. See busted PAC.
  
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